Morgan Stanley has maintained an Overweight rating on Kotak Mahindra Bank, assigning a target price of ₹2,600 — implying a potential upside of approximately 23% from the current market price of ₹2,121.20.
The brokerage noted that while the bank’s loan growth remains stronger than the broader system, net interest margin (NIM) decline and higher-than-expected non-performing loan (NPL) formation were key concerns this quarter.
Morgan Stanley expects Q2FY26 to remain challenging due to continued margin compression but believes earnings should accelerate thereafter, supporting a positive medium-term outlook.
Disclaimer: This article is based on Morgan Stanley’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
